GST helps organised flexi-staffing industry grow faster

General job market is yet to pick up momentum after the disruptions in the economy. But that’s not the case with flexi-staffing. A year into GST, the organised temporary staffing industry has not just made a significant recovery from the lows of demonetisation, but has also clocked a faster growth. GST saw companies shifting from the unorganised staffing pr?o?viders to organised players.

According to Rituparna Ch?akraborty, president, Ind?ian Staffing Federation, the organised flexi-staffing sector has witnessed around 15 per cent growth in hiring post-GST. The growth has been quite evident in secto?rs, including e-comme?rce, logistics, BFSI, pharma and automotive ma?n?ufacturing. New jobs are largely being added in sales, logistics, supply chain and delivery.

“Overall, we have seen a do?uble-digit growth in our st?affing business. The flexi market is growing at about 10-14 per cent YoY, we are happy that we are growing faster than the market rate. Our growth can largely be attributed to our superior service levels and customers wa?n?ting to associate themse?lves with brands that are ethical and compliant with all regulatory guidelines,” said Tha?mmaiah BN, managing director at Kelly Services.

Kapil Sharma, chief sales officer (international busin?e??ss), Collabera, says GST im?plementation has made progressive influence in the ov?erall organised flexi-sta?ffing business.

“In the pre-GST era, the unorganised staffing companies had a price benefit as they never charged service tax. This was primarily witnessed in sectors like retail and e-commerce, logistics, and manufacturing. But now, there is an incentive for the organisations to choose the services of tax-compliant staffing firms, which allow them to claim input tax credit. Organisations seem to have shifted their choice from unorganised staffing partners to organised partners,” he said.

In a way, GST has been a game-changer for the flexi-staffing business. To claim tax benefits under GST, bu?s?inesses prefer meeting their hiring needs via organised staffing firms registered un?der GST, he added.